Top trending stock below Rs 100: Keep a close eye on this low PE multibagger stock from plastics sector!

The stock has been a proven multibagger, having generated over 300 per cent returns in the past 3 years.

After a long period of consolidation, fundamentally strong microcap and Smallcap stocks have witnessed strong buying sentiment. Amidst positive global cues, investors have shown confidence in risky assets having high potential to deliver multibagger returns in future. Meanwhile, one such stock is Texmo Pipe and Products (NSE Code: TEXMOPIPES) which has soared over 5 per cent amid strong buying interest from investors. The stock has been a proven multibagger, having generated over 300 per cent returns in the past 3 years. So let’s understand what is so special about this stock.   

Texmo Pipes and Products Limited has developed a good image in the market due to its high-quality products through process excellence by promoting efficiencies, productivity and professionalism. It is primarily engaged in manufacturing and providing solutions on rigid PVC pipes, casing pipes, industrial pipes coupled with new-age technology and fittings. Looking at its fundamental numbers, the company has posted rising revenue and net profit consistently over the past 5 years. The consolidated net profit grew over 40 per cent last year to Rs 14 crore in FY 2021-2022. The EPS jumped over 25 per cent on annual basis while its profitability and performance ratio see a good jump YoY. Thus, it is pretty much understandable why this stock has attracted investors the most.   

Technically, the stock has registered a breakout from its triangle pattern with above average volume on November 7. Such breakout is considered very positive over medium term. The technical parameters also support the bullish bias of the stock. The MACD has indicated a bullish crossover, which hinted towards the start of an upmove.   

The stock has consolidated at lower levels for some time now. It is quite undervalued considering the PE of just 17.45 as against sector PE of 32.55.   

Currently, the TEXMOPIPES share price trades at Rs 65 level. Long term investors should keep a close watch on this multibagger stock for upcoming days.